New playbook addresses these three peak season challenges
If you’re reading this at the right time, peak season is just around the corner.
This year’s edition of the eCommerce industry’s ‘golden quarter’ brings many different challenges and opportunities. Most of these can be pinned to the economic instability and soaring levels of inflation that are impacting consumer spend and behavior on a global scale.
In the US, for example, retailers expect their customers to become increasingly price sensitive over the holidays due to the rising cost of everyday items. In RevLifter’s peak season predictions, we touched on the subsequent erosion of brand loyalty as fickle customers side with brands that can deliver the best price.
What we’re left with is a perfect storm of three frankly unwanted behaviors that are likely to be exacerbated in 2022.
Increased returns
Customers returning items during Q4 isn’t a new development. According to IMRG, one in every three customers return what they purchase during Black Friday, leading to millions of goods being sent back.
We believe the rate of returns will be even higher in 2022 as budget-conscious shoppers get a hit of post-purchase anxiety.
Abandoned carts
Carts being abandoned during events like Black Friday – again, not a new development. What’s pertinent to remember is that price is often one of the biggest reasons why customers decide against completing their purchase.
Due to the increase in price sensitivity, and the need for customers to leave sites in order to compare those prices, it’s likely that many more carts will be left at the checkout compared to last year. Will they return? That part is up to you.
Deal hunger
The last recession saw voucher sites grow from bedroom pursuits to full-blown businesses as retailers looked for a way of meeting the appetite for deals.
The rising cost of goods combined with the reduction in disposable income may lead to customers habitually searching for vouchers over peak season.
Time for some good news?
We fully expect customer spend will be at a healthy level as shoppers aspirationally on events like Black Friday and Cyber Monday. In the UK, for example, the average consumer is expected to spend 25% more over the Black Friday weekend compared to 2021.
To help you tap into some of this extra spend, we’ve released a special Peak Season Playbook.
Containing plays on stretching spend, tackling returns, recapturing deal seekers and more, it could be your ticket to incentivizing smartly over the next few months. Better still, they can all go live within a few weeks.
